What happens if I am unable to pay a small claims court judgment?

If you are unable to pay a small claims court judgment in Colorado, the court will issue a document called a Writ of Execution. This document orders your creditor to collect the unpaid debt from you. The Writ of Execution allows the creditor to collect the debt from you in the form of wages, money in the bank, or property. If the creditor is unable to collect the debt, they can ask the court to impose a lien on your property. This lien will list the creditor and how much you owe them, and will remain in place until your debt is paid in full. The court can also garnish your wages by sending an order to your employer. Your employer must then deduct a certain amount of money from your paycheck each period and send it to the creditor. If the debt is not paid off, it may be sent to a collection agency, which may have the option to send the debt to a credit collection bureau. This could potentially damage your credit score, making it more difficult to get approved for credit cards or loans in the future. It is important to try to pay the judgment as soon as possible in order to avoid any of these consequences. If you are unable to pay, speak to the creditor about a payment plan, or contact a debt-management professional who can help you come up with a solution.

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What happens if I am unable to pay a small claims court judgment?

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